INTERVIEW: Logitech Will Focus On Tablet Computers In 2012
28 January 2011 - 3:07AM
Dow Jones News
Swiss technology company Logitech SA (LOGN.VX) will focus on
computer tablet compatible technology next year to increase sales
and offset any declines in its main computer mice and keyboard
business.
"We are embracing tablets, they are a great opportunity, it's
additive and we are going after it," Chief Executive Gerald
Quindlen told Dow Jones Newswires in an interview Thursday.
He said there will be a tablet focus to Logitech's product
launches in 2012, and 25% of its new retail products will be tablet
friendly.
Quindlen declined to reveal exactly what those products would
be, saying some would be tablet specific while others could also be
used with other types of computer and smart phones.
Logitech traditionally spends between 6% and 7% of its revenue
on research and development, a significant proportion of which is
being invested in tablet products, Quindlen said.
"Audio and keyboard peripherals are two obvious opportunities
and we have others, there is plenty of room to add value to the
tablet experience," Quindlen said.
Analysts had previously voiced fears that Logitech could suffer
declining sales from its pointer and keyboard business - which
makes up around half of sales - due to the increased popularity of
tablet computers like Apple Inc's (AAPL) iPad.
Logitech is now developing products which are compatible with
the iPad as well as with other platforms like Android.
Quindlen is still confident about the future of the desktop PC
business, which Logitech supplies with speakers and keyboards in
the after market business as well as to computer manufacturers.
"We still see growth in the PC category, particularly in
emerging markets," Quindlen said, noting mouse sales in the U.S.
had enjoyed a strong quarter.
Overall revenues from sales of mice rose by 12% during the
quarter, and the number of units sold rose by 23%, he added.
"People have been predicting the death of the mouse for a long
time, but that's not a view I agree with, far from it," Quindlen
said.
He was speaking after Logitech reported record sales during its
crucial third quarter, with strong growth in Asia - which accounts
for around 25% of its business - and at its LifeSize video
conferencing business.
Sales in the three months to Dec. 31 2010 beat expectations,
rising 22% to $754 million, while net profit rose 14% to $65
million.
As a result the company, which is based in Morges, Switzerland,
increased its full year sales guidance to $2.4 billion-$2.42
billion, up from $2.35 billion-$2.4 billion.
Quindlen said Logitech is now on course to achieve the higher
end of these targets, including a record sales year for the
company.
It will also look to expand its footprint in China, which is one
of the company's fastest growing markets.
Google Inc's (GOOG) TV product, for which Logitech provides a
revue set top box, will contribute around $40 million in sales this
fiscal year which ends on March 31, Quindlen said.
Quindlen said he had been slightly disappointed with the uptake
in the U.S. but demand had picked up in the last few weeks before
Christmas.
"It is Google and our intention to expand into other markets,
and Europe is the next major region. But it is not the top priority
at the moment," he said.
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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